In his maiden speech as the Bank of Korea's governor, Shin Hyun-song highlighted the importance of central bank digital currencies and bank-issued deposit tokens, omitting any reference to stablecoins amidst South Korea's ongoing discussions on new cryptocurrency regulations. Shin, who commenced his four-year term, drew attention to the bank's ongoing retail central bank digital currency and deposit-token pilot project, known as Project Hangang, as well as its participation in Project Agorá, a cross-border tokenization initiative led by the Bank for International Settlements. He positioned digital currency as a key component of a broader transformation in central banking, particularly during a period of economic challenges and slower domestic growth.
Notably, Shin's remarks did not mention stablecoins, a topic that has been at the forefront of policy discussions in Seoul, with lawmakers considering the Digital Asset Basic Act, which aims to establish rules for stablecoin issuance. Previously, Shin had suggested that stablecoins could coexist with central bank digital currencies and deposit tokens in a complementary and competitive manner. His speech outlined a bank-led model, where the central bank would issue a central bank digital currency, while commercial banks would provide deposit tokens that are fully convertible into it.
Shin has argued that any stablecoin issuance should originate from regulated banks. In addition to payments, Shin indicated that the central bank would increase its scrutiny of cryptocurrency markets and non-traditional financial institutions. He stated that the bank would expand its monitoring of cryptocurrencies and other non-traditional assets, seeking broader access to data to track financial risks. Furthermore, Shin pledged to take steps to modernize currency markets, including the introduction of 24-hour foreign exchange trading and an offshore won settlement system.